One debt management group has recently accused lenders of failing consumers by getting them into increased personal debt through irresponsible lending.
There is no doubt that consumers in the UK have a serious problem when it come to personal debt, and much of this debt has been accrued on credit cards, with debt problems spiralling out of control for many credit card holders. One debt management group has now accused lenders of failing consumers in the UK by getting them into increased levels of debt through irresponsible lending.
An official from the debt management group MoneySolve said: “Of course we all have to take an element of responsibility for our own borrowing. But the lenders are the supposed experts here. They have to accept a level of accountability for instances in which people are permitted to borrow more than they can realistically afford to repay.”
The debt management group has condemned the reckless credit card lending that some lenders have been accused of, and this comes after recent press reports claimed that some consumers were now being offered cheaper credit than they were before the recession, sparking fears of over-borrowing and over-commitment when it comes to finances.
The group also commented on the long periods of interest free credit being offered on some credit cards now, stating: “This is nothing short of reckless. We’re in a period in which there are heavy spending cuts coming, potentially costing a lot of jobs, and we’re still feeling the effects of the last recession! Some lenders just haven’t learnt from the mistakes that contributed to the last economic crisis. Over-lending encourages over-borrowing and this results in higher levels of personal debt. It’s as simple as that.”
Source - CPI Financial